Honolulu Real Estate: The Coconut Wireless

Homeowners who are facing financial difficulty are often targeted by mortgage relief scams. These scams can be very convincing, and homeowners may be desperate for help, making them vulnerable to these schemes. Scammers often pose as government officials or mortgage experts, and they may promise homeowners that they can help them avoid foreclosure or modify their mortgage loan. However, these promises are often false, and homeowners who fall victim to these scams may lose their homes and their money. If you are facing financial difficulty and you are considering a mortgage relief program, it is important to do your research and be very careful. Here are some tips to help you avoid becoming a victim of a mortgage relief scam: Only work with a HUD-approved housing counselor. You can find a housing counselor by calling 1-888-995-HOPE (4673). Be wary of anyone who promises to help you avoid foreclosure or modify your mortgage loan for a fee. It is illegal for anyone other tha

Buying or selling a home is a big adventure; some thrill seekers may choose to take on both tasks at the same time. If you're finding yourself in the position of needing to buy and sell at the same time, here are some tips to help you navigate the possibly challenging course ahead of you. Evaluate Your Local Market For most buyers and sellers, selling their current home before putting an offer on another property is their best real estate option. But for others, it really depends on the local real estate market. If you're thinking of selling and buying at the same time, research the market in your target area. This can help you gauge whether it's a buyer or seller market. If many properties are available, it might be a good time to list. If inventory is low, you may need to wait until the market picks up again. The general rule of thumb is to sell first in a buyer's market and buy first in a seller's market; but this isn't always the case since eve

With new mortgage rates approaching 8%, many buyers have decided to wait for rates to come down.   While there may be some easing in the fourth quarter of 2023 and 2024, assuming an existing FHA mortgage with a lower rate made in the last three or four years might be a much better alternative. Since December 1, 1986, FHA has had the right to approve the purchaser of an existing FHA loan.   Prior to that, anyone, regardless of credit worthiness or other qualifications, could assume an existing FHA loan.   Existing FHA mortgages are assumable at the current interest rate for owner-occupied buyers.   The benefit is that the rate could be much lower than a new current mortgage.   The borrower must qualify for the loan under current FHA underwriting guidelines, but it will be easier because the payment will be lower due to a lower assumable mortgage rate. The buyer's closing costs on an assumption are less than a new FHA loan because an appraisal and survey are not requir

Navigating a real estate transaction, which often involves substantial financial investments and emotional considerations, can understandably induce stress. To streamline this process, adopt these effective strategies that promote a smoother journey. Begin by clearly outlining your primary motivations for either buying or selling a property. By eliminating distractions and maintaining a focused perspective, you can mitigate potential anxieties. For instance, if your primary goal is to secure more space for your family, evaluating properties without this essential feature becomes a straightforward decision. Whenever feasible, allocate ample time to prevent hasty decisions or setting unrealistic deadlines. While external factors like a sudden job relocation or a booming market might necessitate swift responses, it's crucial to differentiate between preparedness for action and arbitrarily shortened time frames. Remember, orchestrating a successful transaction requires co

The decision to rent or own a home is not just about having a place to live; it also has significant implications for your financial future. One key aspect that often comes into play is net worth ... the value of your assets minus your liabilities. Numerous studies and statistics highlight a compelling trend: homeowners tend to have higher net worth compared to renters. The numbers according to the Federal Reserve's Survey of Consumer Finances confirms the belief that homeownership has long been associated with wealth accumulation.   The median net worth of homeowners is 40 times higher than that of renters. This discrepancy can be attributed to several factors that favor homeowners, including equity buildup, property appreciation, and forced savings through mortgage payments. Homeownership allows individuals to build equity over time, which is the difference between the home's market value and the remaining mortgage balance. Every mortgage payment with amortizin

Ken & Barbie have been married 20 years and have owned their current home for over 10 years. Without the benefit of legal or tax advice, they decide to divorce with Ken taking his retirement and Barbie taking the equity in the home which are equal in value. It appears to be equitable until a year later when Barbie decides to sell the home.   It sells for the same market value at the time of the divorce but now Barbie pays all the sales costs.   The unpaid balance on the home was much larger than normal because it had been refinanced for $750,000 two years earlier. When Ken gave Barbie his equity in the house, he also gave her his tax liability in the home.   Barbie has a substantial capital gain because the home was purchased for a much lower price ten years earlier.   Capital gain is calculated by taking the sales price less sales costs, plus capital improvements made, less the purchase price. Since she is single, she has a $250,000 exclusion and the balance of the g